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Although reporting issuers listed on major Canadian exchanges have generally been subject to MI 61-101, this initiative by the Alberta, Manitoba and New Brunswick regulators should reduce regulatory burden and provide additional investor protection in those jurisdictions by:

Increasing the efficiency of local compliance and enforcement mechanisms;

Further harmonizing Canadian securities law; and

Providing a local regulator with whom parties may engage.

Background

Designed to provide fair treatment to all security holders, MI 61-101 regulates business combinations and take-over bids involving certain insiders or related parties and requires enhanced disclosure, independent valuations and majority of minority security holder approvals for prescribed transactions. MI 61-101 has been in effect in Ontario and Quebec since February 1, 2008 and, as a consequence, issuers listed on the Toronto Stock Exchange, Aequitas NEO Exchange Inc. and the Canadian Securities Exchange have already been subject to MI 61-101 by virtue of being reporting issuers in Ontario. TSX Venture Exchange listed issuers have also been subject to MI 61-101 pursuant to TSX-V Policy 5.9 Protection of Minority Security Holders in Special Transactions.